State pensioners could get £300 HMRC boost if they do 1 thing | UK | News
State-retired grandparents caring for their grandchildren may be in line to receive extra funds on top of their pensions. Specified Adult Child Care (SAC) credits mean those caring for children under the age of 12 during or during school holidays may be eligible for an increase.
SAC can increase the pension of a person eligible for National Insurance benefit from HMRC by more than £6,000 over a typical 20-year retirement period.
The way the rule works is that the National Insurance credit linked to child benefit is transferred from the person claiming child benefit to a relative who provides care for a child under 12 or, if the child is disabled, a child under 17.
Those eligible for benefits will be given class 3 National Insurance credit for each week or part week they spend looking after the child. Only one credit can be transferred per child benefit claim, regardless of how many children are registered for the claim.
For example, if two grandparents were looking after their daughter’s two children, only one credit would be transferred and it would be up to the child benefit claimant to decide who would receive it.
The rule only applies to grandparents caring for children whose parents work.
Cambridgeshire Live reports that a retrospective claim for Designated Adult Childcare can be made from 6 April 2011.
Who is eligible for certain Adult Child Care credits?
You can apply if you meet these criteria:
You were over 16 and under State Pension age when you provided care to the child
You are normally resident in the United Kingdom but not in the Channel Islands or the Isle of Man
the child’s parent (or main carer) has claimed Child Benefit but does not need the credit
The child’s parent (or primary carer) accepts your application by signing the form to confirm that:
can get a loan for the specified period
Who counts as eligible family members?
You are classed as an eligible family member if:
grandparent, great-grandfather or great-grandfather
brother or sister – including half-brother or half-sister, half-brother or half-sister, adopted brother or adopted sister, aunt or uncle
You are also classed as an eligible family member if you have any of the following conditions:
Son or daughter of the current or former husband, wife, partner or civil partner of anyone listed above
Who should not apply?
During the same period, you should not apply for a loan if:
If you receive Child Benefit for any child and already receive automatic credit
If you are a spouse or partner living with a Child Benefit recipient and want to transfer the credits to yourself, you must complete form CF411A – more details Here.
When to apply
You must wait until October 31, after the end of the tax year for which you wish to apply. This means you can currently claim for the financial years 2011/12 to 2024/25.
This is because HMRC need to check whether the parent or primary carer has a qualifying year for National Insurance.
What you need to apply
To fill out the application form you will need:
details of the child and the times you provided care for them
Personal information of the child’s parent or primary carer (Child Benefit recipient)
You can find full details of how to apply on the GOV.UK website.
